2014 2015 2016 182.650 2017 238,804 351,197 JO SOL Income statement ALD'mon Reverse Cost of sales Grosso Operating Profit Prot/Loss Before Tax Net Prot/Los Alter Tar 222,245 190.121 32.124 27.294 42.696 6.179 4.982 2.479 3.560 37,546 3,505 7182 4.005 174 2015 2016 2014 197,046 29.763 191.233 26.389 195.506 23.484 2017 201.550 25 sec Balance sheet as on 31 December CU milion Non-Current Ass Cash and cashes Current Assets Total Assets Current Non-Current Shareholders' Equity Non controlling interest Total equity Total liabilities Suity 284,309 63,616 108,050 111,421 1,201 112,643 284,309 70.603 261,836 54.725 108.723 97.196 263.320 58.355 108,121 95.266 276,519 64.727 131,387 9.471 1.913 100,405 276,519 1.171 98,388 261.836 1.557 96,844 263.320 Tota debit 52.654 53.16 63.230 2015 19.135 2016 10.09 16,701 2017 16.99 16.562 AED milion Net cash flow from operating activities 32.756 Capital Expenditure -22,546 Net cash flow from investing activities -19.574 Nit cash flow from Financing activities Net increase/decrease in C&C 7,247 Cash & cash equivalents 1st Jan 2.885 Cash & Cath equivalents ist Dec 10.132 -18.648 -17.300 453 -14.753 1.979 14.077 3.296 -2.901 -2.370 10,132 2.106 36 6,762 3.861 6,762 5.967 Required 3. Bated on the extract given. calculate the below ratios/ ves mentioned below and comment on the performance of the Company over the last four years. Focus on any aromates in the ratio . Gross profit margin Net profit margin 6 Return on assets Return on equity Free Chow 2. What would be the maximum additional debt Petro Chem can take to maintain the et toeguity ratio within the drangeason 31 Dec 2017? 3. Petro Chem in planning to buy a new refining plant in Canada. The plant is built with tot prouction capacity of 100 million barres af refined products. The variable cost of production per barrels AED 50 of which fuel costs form 40. The five cont to operate the plant per year is ALD. . What would be the seting price to achieve a break even assuming the plants running at ito? . Assume the products 1010 AED 150 per barrel. Due to a technical gitch in the plant the utilisation dropped to for a year. What would be the expected impact on the profit? The oil price increased from AED 50 per barrel to AED 55 per barrel which would impact the production costs. What should be the new selling price to achieve a 108 tro mergin at Nation? Petro Chem is one of the world's largest oil and gas companies - based on market capitalisation, reserves and production Summary of the results for the last 4 years has been added below Income statement AED' million 2014 2015 2016 2017 Revenue 351,197 222,245 182,650 238,804 Cost of sales 308,501 190,121 154,656 201,258 Gross profit 42,696 32,124 27.994 37,546 Operating Profit 6,175 2,479 3,222 8,505 Profit/Loss Before Tax 4,952 -9,569 -2,293 7,182 Net Profit/Loss After Tax 4,005 -6,398 174 3,470 Balance sheet as on 31 December CU' million 2014 2015 2016 2017 Non-Current Assets 197,046 191,233 195,506 201.550 Cash and cash equivalents 29,763 26,389 23,484 25,586 Current Assets 87,263 70,603 67,814 74,969 Total Assets 284,309 261,836 263,320 276,519 Current Liability 63,616 54,725 58,355 64,727 Non-Current Liabilities 108,050 108,723 108,121 111,387 Shareholders' Equity 111,421 97.196 95,266 98,471 Non-controlling interest 1,201 1,171 1,557 1,913 Total equity 112,643 98,388 96,844 100,405 Total liabilities & equity 284,309 261,836 263,320 276,519 Total debt 52,854 53,168 58,300 63,230 2014 2015 2016 Cash flow AED' million Net cash flow from operating activities 32.756 Capital Expenditure -22,546 Net cash flow from Investing activities -19,574 Net cash flow from Financing activities -5,264 Net increase/decrease in cash & cash 7,247 equivalents Cash & cash equivalents at 1st Jan 2,885 Cash & cash equivalents at 31st Dec 10,132 19,135 -18,648 -17,300 -4,533 10,693 -16,701 -14,753 1,979 2017 18,933 -16,562 -14,077 -3,296 -2.901 -3,370 10,132 6,762 6,762 3,861 2,106 3,861 5.967 a. C. e. Required: 1. Based on the extract given, calculate the below ratios/values mentioned below and comment on the performance of the Company over the last four years. Focus on any anomalies in the ratios. Gross profit margin b. Net profit margin Return on assets d. Return on equity Free cash flow 2. What would be the maximum additional debt Petro Chem can take to maintain the debt to equity ratio within the guided range as on 31 Dec 2017? 3. Petro Chem is planning to buy a new refining plant in Canada. The plant is built with a total production capacity of 100 million barrels of refined products. The variable cost of production per barrel is AED 50 of which fuel costs form 40%. The fixed cost to operate the plant per year is AED 8b. a. What would be the selling price to achieve a break even assuming the plant is running at 95% utilisation? b. Assume the product was sold at AED 150 per barrel. Due to a technical glitch in the plant, the utilisation dropped to 85% for a year. What would be the expected impact on the profit? C. The oil price increased from AED 50 per barrel to AED 55 per barrel which would impact the production costs. What should be the new selling price to achieve a 10% profit margin at 95% utilisation